Why Ten Lakes Realty Cannot Give You a Buyers Rebate.
Since I started Real Estate as a Broker Owner, I wanted to help YOU, I wanted to give Sellers a Cheaper Commission Price – The Local Realtors Boycotted this because they did not want to take less. And they told my clients that listing for less would not b good because than nobody would show their listing. They frowned on my commission reductions and though I ran ads bragging about commission.
When I opened my office I wanted to give away large gifts and give buyers cash money back at closing. My thinking at the time was that, “Look how much money I am making on this Transaction, I wanted to give money back to the Buyers”. I thought that if I could make this kind of money it only made sense to give some of it back to the buyer to help with anything; gas, their mortgage, fixing up the house or whatever they wanted. But the local Association of Realtor told me that I could not do this.
As the years piled on and I read about so many others offering Buyers Rebates, I inquired again. This time I was told that it is Montana State Law that I cannot give you a Buyers Rebate.
However, I was Told by the Montana Association of Realtors Attorney that I could give “cash back” after closing but that I cannot advertise that I am will give “cash back” at closing. Now it seems to me that I would want to Promote this Generosity in hopes of getting an even larger client base. I could not. In the last year the “Realtors” took on even stricter laws to ensure that buyers do not get rebates.
After I spoke with this Attorney, a newsletter came out from the Montana Association of Realtors. It was about Buyers Rebates, and how they are illegal. It even went as far as to say that it could be construed as mortgage fraud. This I found to be
In a time when Consumers want more services and less money from Realtors, they are putting more money toward political action to stop Consumers from getting any money back from Realtors. Other States allow this and
What Does the State of
Last summer Montana Adopted a rule that states "Licensees may not solicit business by offering gifts, rebates, or promotional items." This Keeps from From Advertising to YOU that I will Give a Buyer a Rebate. So I can spend my money on whatever I want to but I certainly am NOT Allowed, by Montana State Law to Give any of MY MONEY to YOU.
The MAR attorney, at one point told me that I could give cash back after closing but that I could not advertise that I would. A week later a newsletter came out stating that it MAY be mortgage fraud to give a buyer an “Rebate”.
I ask is Real Estate Commission Mortgage Fraud?
No body knows what we charge, so our difference in rates may be considered mortgage fraud. Unless, THEY assume we all charge 6%, but wait that would violate Anti-Trust Laws wouldn’t it.
Is it Mortgage Fraud when the Seller pays for the Buyers Closing Costs?
I mean these issues should affect the “actually SOLD” price and thereby MAY be considered Mortgage Fraud. There is NO quality control to make sure that Real Estate SOLD data is entered into the computer correctly, there is no way for an appraiser to consider the commission and back that off of the actually SOLD price, and no body goes around to the actual offices and make sure that the Real Estate actually SOLD and for the price that is in the MLS. So why, IS a Buyers Rebate up for Questions and Accusations of Mortgage Fraud?
I Believe it is a Scare Tactic to Keep Realtors from Giving a Rebate and Encourage them to Tell On Each Other. We certainly would not Want a Real Estate Transaction where the Seller or the Buyer Wins, Now Would We.
Why not ask Montana Why they don’t want to offer a Buyers rebate but other states do. Why does
The MAR Attorney told me that he did understand how a real estate company in Santa Cruz, has a competitive edge over me, if it is not licensed in Montana and therefore unable to do business here. The MAR Attorney said that If the company is licensed in
When Real Estate Companies in California are advertising Buyers Rebates, MLS Flat Fee Services, and Discount Broker, and they are Getting MY real estate leads and selling them back to me as a Lead Generation, than Yes, I am in Direct Competition with Real Estate Companies that are not licensed in My State.
These are the
that Say I cannot give a Buyers Rebate.
It is as clear as mud.
ARM 24.210.641(3)(ab).
ARM 24.210.641(6)(aa).
(aa) Licensees shall furnish a copy of a written instrumen
to a party executing it at the time of its execution?
Apparently I cannot use the "cash back" as a marketing tool designed to generate new business. But I can Rebate my commission to my client at the closing table.
Apparently this has been always been legal. However, The NMAR told me my first year in real estate that I could not give any kind of incentive or "cash back".
So What Ever the Law ALLOWS me to DO, I Will Do For You, my Clients.
I am Just Not Clear on What the Law Really does Allow. They try and keep us all mixed up so that we won’t give a rebate or "cash back" of any kind. They don’t want us to Compete with the Realtors who WON’T give "cash back".
So There You Have it. Its ALL Clear Now.
The Department of Justice Has a Website That Lets You Know Which
States Control Whether a Broker Owner can Give a Rebate or Not.
Check Out There Website.
The Department of Justices Nationally Seems to Care About You
but some states do not.
http://www.usdoj.gov/atr/public/real_estate/montana.htm
http://www.usdoj.gov/atr/public/real_estate/commission_table.htm
http://www.usdoj.gov/atr/public/real_estate/rebate_calculator.htm
But We Can Negotiate the Commission With The Seller Right ?
So if it is .5% Less Than Could I give that To a Buyer from The Seller ?
Hmmmm.... ALL seems Like Games to HURT the Consumer To Me.
Montana Real Estate Rebates or Cash Back.